Javier Pastore has signed a new contract with Palermo.

President Maurizio Zamparini confirmed he had rejected a €50m bid from an undisclosed outfit this season. Chelsea and Manchester City have been linked.

"I am very happy here," said Pastore after signing a new deal with a €60m buy-out clause.

"From 2012 onwards we'll see," he added.

The contract is worth just €800,000 per season to begin with, growing in connection with performance.